The past 24 hours have been challenging for XRP holders

A sharp 5.8% decline in price has brought the asset close to testing critical support around $2

The past 24 hours have proven challenging for XRP holders as the cryptocurrency experienced a sharp 5.8% decline in price. This downturn brought the asset dangerously close to testing critical support around $2, and selling pressure is currently outpacing buying volume.

As the market sentiment towards XRP continues to sour, one analyst has decided to speak up and keep the hope for the cryptocurrency alive, especially since the recent price action might suggest that the altcoin is still on track to reach new all-time highs.

Analyst Highlights $2.222 As Breakout Level To Watch

Renowned crypto analyst Dark Defender took to X, formerly Twitter, to highlight his bullish outlook on XRP despite the token now trading at its lowest Fibonacci level following the recent downturn. According to him, this could be a major pivot point.

According to the analyst, $2.222 is a key resistance level that XRP needs to break to continue its upward momentum.

"If we do break this (which I think we will), then we can see a wave of momentum pushing XRP to new highs," the analyst stated.

During the time of his post, XRP was trading at approximately $2.18, having just pulled back after facing rejection at $2.46. This rejection marked the start of a fresh decline, one that ultimately brought XRP down to the lowest Fibonacci threshold laid out in his earlier projections.

However, it seems that the altcoin might not yet be done with its retracement phase as there is still a possibility of a further dip toward $2.04, which Dark Defender previously identified as the final Fibonacci level in the current structure.

As of now, the altcoin is hovering just around this $2.04 zone, making it a decisive area for the bulls. Whether this level holds or gives way could determine the short-term direction of XRP’s price movement.

$5 To $8 Still In Play For XRP As Wave 5 Target Despite Bearish Momentum

Despite the ongoing price correction, Dark Defender still stands by his forecast of an XRP price range of $5 to $8, aligning this target with the expected completion of the ongoing fifth wave in the Elliott Wave count structure. The current wave structure suggests that April and May could be the months where it sees explosive growth.

This new prediction comes as the crypto market Fear and Greed Index has reached a fear level of 24, further highlighting the bearish market sentiment. However, Dark Defender noted that this bearish market sentiment might not necessarily be a bad sign. In fact, he described the prevailing bearish outlook held by 90% of market participants as “excellent,” implying that it might set the stage for a surprise reversal.

At the time of writing, XRP is trading at approximately $2.05, having lost 5.7% in the last 24 hours and over 15.8% in the past week. Trading volume has also been down by 17% in the past 24 hours.